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Sports Novelties Distributor – College & Professional Teams



  • Price

  • Revenue

  • Cash Flow

  • Equipment

  • Inventory

  • Down Payment

  • Multiplier

  • Account Receivable

  • Service Area
    Continental United States

  • Valuation

  • Employees
    27: Operations VP, GM, 2 sales, 2 product management, bookkeeper, marketing, 11 warehouse; 7 in another0 state: 3 sales, 4 warehouse

  • Intangible Assets
    Established reputation, diverse customer base, clear and informational website

This sports novelties distributor stocks over 300 types of products manufactured by over 40 licensed vendors and warehoused in two states. Established in 1990, this Omaha-based company distributes mini football helmets, team mugs, team pennants and more to over 800 small businesses coast to coast. Over 95% of business is done business-to-business with the remaining 5% being direct sales to customers (i.e. “Mom & Pop” stores).  In the past 12 months, this company has been granted contracts with Jack Daniels, Harley Davidson and Riddell to distribute their products, making them 1 of only 6 distributors able to do so.


There are 19 employees between the two locations, with a VP of Operations, a General Manager; 2 in sales, 2 in product management, 11 in warehouse, 1 bookkeeper and 1 marketing manager.  Manufacturers include WinCraft, Fremont Die, Schutt and more.  Customers are offered Wholesaler or Drop Ship Programs, and most orders are shipped between 24-48 hours.


The current owner desires to retire within the next year and is selling the company he has built from the ground up. The business has expanded to include a second location, allowing the business to cut down on shipping costs. Both locations have warehouses and are fully staffed with management and employees who pack and ship orders.  Current ownership is responsible for overseeing general business operations and some purchasing of inventory.

Business Highlights

  • Year Established: Omaha, NE: 1990
  • Location: Omaha, Nebraska (opened 1990) & another Midwestern state (opened 2009)
  • Service Area: Continental United States, with most orders shipping within 24-48 hours
  • Clients: 95% distribution to other businesses; over 800 customers
  • Products: mini football helmets, team mugs, pennants & more (all licenses held by manufacturer)
  • Manufacturers: WinCraft, Fremont Die, Schutt, Riddell, ProMark Northwest, Kolder and more
  • Wholesaler Program: low minimums – items purchased in single piece quantities
  • Drop Ship Program: customer can offer wide variety of products without inventory cost; they take orders and distributor ships
  • Corporate Office & Warehouse: 32,000 sq. ft. at $14,398/month
  • Distribution Center: 17,000 sq. ft. at $8,145.16/month
  • Reason for Selling: Retirement
  • Employees: 19 in Omaha: VP of Operations, General Manager, GM Assistant, 2 sales, 2 product management, bookkeeper, marketing, 11 warehouse; 7 in another state: 3 sales, 4 warehouse
  • Hours: Monday – Friday: 8AM – 5PM
  • Seller Training Period: 90 Days
  • Growth Opportunities: Expand presence in grocery stores, convenience stores, baby/infant retailers, and hardware stores. Add other product lines business has been approved for
  • Current Owner’s Responsibilities: 15-20 hours weekly -purchasing inventory, overseeing general business

Financial Highlights

  • List Price: $4,400,000
  • 2017 Gross Sales: $10,352,233
  • 2016 Gross Sales: $11,106,015
  • 2017 Cash Flow: $1,076,216
  • 2016 Cash Flow: $1,047,613                         
  • $3,322,100 worth of assets included in the purchase
    • Assets: $104,900 – all furniture, equipment, computers, warehouse shelving, 2 fork lifts, 1 pallet shrink wrap machine
    • Inventory: $2,903,300 in licensed sports team novelty Items
    • Intangible Assets: Established reputation, diverse customer base, clear and informational website
    • The valuation is based strictly on cash flow, not inventory.  The inventory will always fluctuate, but that will not affect the price.
  • High barrier to entry
    • Large manufacturers (like Riddell) require a minimum of $3M in sales to qualify as a distributor for their products
    • “Platinum” Distributor – 1 of 6 in country allowed to distribute Riddell products

*amounts may vary

Cash Flow

  • Rent for Omaha is $180,000 per year, and $97,742 per year for the other warehouse
  • In 2014, a consultant was hired to lower expenses and cut labor costs, resulting in 65% increase of net income

Product Offerings

  • Auto Accessories
  • Collectibles
  • Displays & Supplies
  • Helmets
  • Indoor home & office
  • Kitchen & Dining
  • Outdoor Lawn & Garden
  • Party & Tailgate
  • Sporting Goods
  • Toys & Games

Sports Teams

  • NFL
  • NBA
  • MLB
  • Nascar     
  • MLS
  • NCAA
  • NHL
  • US Armed Forces


  • Wholesaler
    • Over 30,000 products
    • Low minimums
      • Most items can be purchased in single piece quantities
    • Quick turnaround
      • Most orders ship in 24-48 hours
    • Shipping option
      • UPS, FedEx, USPS, LTL
  • Drop Ship
    • Over 30,000 products
    • Drop shipper can offer a wide variety of products without the inventory cost
      • Take the order and the distributor does the work
    • First-tier pricing
    • Quantity discounts


  • 800 customers
    • 95% distribution to other businesses
      • Grocery stores
      • Hardware stores
      • Baby supply stores
      • Truck stops
    • 5% are straight to customer (i.e. “Mom and Pop” stores)
  • No one client is more than 10% of total sales


  • Omaha (19)
    • President
    • Vice President of Operations
    • Marketing Manager
    • Product Manager (2)
    • Warehouse (11)
      • Manager
      • Order checker/packer
      • Order puller
      • Receiving & Shipping
    • Bookkeeper
    • Sales Representative (2)
  • Other Warehouse (7)
    • General Manager
    • Sales Representative
      • Sales Assistant
    • Order checker/packer
    • Order Puller
    • Receiving & Stocking

Valuation Details

The Firm Business Brokerage used a Cash Flow Valuation methodology to determine the Purchase Price of the business. 

The formula used is as follows:

Cash Flow       x          Prescribed Multiple     =          Fair Market Value

Cash Flow is the sum of business net income plus any owner perks and any non-onward going expenses.

A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.

With this information, the computation is as follows:

$1,076,216      x          4.09     =          $4,401,723

Funding Example

Purchase Price:                    $4,400,000

10%Buyer Down Payment:   $440,000

15%Seller Financing:             $660,000

75%Bank Loan:                   $3,300,000

Seller Financing 6-year term at a rate of 4.50% equals a monthly loan payment of $10,477

Bank Loan 8-year term at a rate of 6% equals a monthly loan payment of $43,367

After business expenses and annual loan payments of $646,123, a buyer would retain a profit of $430,093 the first year.

Please note that the decision of whether to extend a loan on any particular sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available. 


  • Business Summary
    • Identifies important business information in an organized quick-reference format
  • Top 10 Manufacturers & Product Listing
    • Top 10 manufacturers listed by logo, and an extensive list of products available with picture included
  • Organizational Chart
    • Breakdown of employees in each location and their titles
  • Cash Flow Analysis
    • Cash Flow is the owner profit, which is the sum of business net income plus any owner perks and any non-onward going expenses.

Purchase Price:



Bank Loan Needed: $


Funding Details


Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $


Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2017 Cash Flow
Annual Debt Service: $

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2017 Cash Flow
Annual Debt Service: -$

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
ROI: %


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210 N 78th St. 2nd Floor
Omaha, NE 68114

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